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Unions claim they have been given the right to march on Thursday, after police had earlier announced a ban that sparked outrage from French politicians.

Unions said on Wednesday afternoon that the government had finally agreed to allow a demonstration on Thursday, after the police had banned it earlier that morning.

"After tough talks with the interior minister, the union and student organisations obtained the right to demonstrate on a route proposed by the interior ministry," Philippe Martinez of the far-left CGT union told a news conference.

The government also gave the go-ahead for a demonstration next Tuesday, on the eve of a Senate vote on the government's hotly-contested labour reforms, Martinez said.

He was speaking on behalf of seven unions and student groups that had called Thursday's demonstration.

The agreed route will cover 1.6 kilometres (one mile) near the centre of the French capital.

Interior Minister Bernard Cazeneuve is set to speak to the press on Wednesday afternoon.

"This is without precedent," he told the BFM TV channel. "I know there are constraints when it comes to maintaining public order, but the freedom to demonstrate is fundamental.

"We are within a hair's breadth of reaching a compromise on the labour law and that's when the prime minister chooses to harden his position even further," said Paul, who heads the left flank of the Socialists in parliament.

Another Socialist MP Karine Berger took to her Twitter account to denounce the move adding she "didn't recognize her country, or her party".